Core Viewpoint - Xunzhong Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange after previously attempting to sell to Dahua Intelligent and later pursuing an IPO on the Beijing Stock Exchange. The company aims to expand its market presence, particularly in Southeast Asia, amidst fluctuating revenues and increasing competition in the cloud communication sector [1][15][16]. Company Overview - Founded in 2008, Xunzhong Co., Ltd. specializes in cloud communication services, intelligent cloud contact services, call operation services, and intelligent scenario applications. The core business, known as CPaaS (Communication Platform as a Service), accounted for over 80% of its revenue during the reporting period [1][4]. - As of July 31, 2023, the company's stock price was 7.12 RMB per share, with a market capitalization of approximately 650 million RMB [1]. Financial Performance - The total revenue for Xunzhong Co., Ltd. for the years 2021, 2022, and 2023 was 994 million RMB, 810 million RMB, and 916 million RMB, respectively. The profit for the same years was 74.8 million RMB, 74.7 million RMB, and 76.6 million RMB [4][5]. - The company experienced an 18.5% decline in total revenue in 2022, attributed to intensified market competition and reduced demand for mobile traffic services due to the pandemic [6][8]. - In the first quarter of 2024, revenue decreased by 19.7% compared to the first quarter of 2023, primarily due to a 20.1% drop in cloud communication service revenue [6][8]. Market Position - According to Frost & Sullivan, Xunzhong Co., Ltd. is the largest full-stack cloud communication service provider in China by revenue in 2023, with a market share of approximately 1.8% [1][2]. - The company ranks fourth in the Chinese cloud communication service market, with significant competition from other established players [2]. Customer Base - The number of enterprise clients has fluctuated, with over 3,500 clients in 2021, 2,400 in 2022, and remaining at 2,400 in 2023. The revenue from the top five clients accounted for approximately 40.8%, 41.8%, 36.7%, and 55.4% of total revenue during the respective years [6][8]. Future Plans - The company plans to use the funds raised from the Hong Kong IPO to enhance its services and solutions, including integrating large language models into existing cloud communication services and expanding its sales channels [8]. - Xunzhong Co., Ltd. aims to explore business opportunities in Southeast Asia, targeting companies with over 100 employees and annual revenues exceeding 50 million HKD [8].